Jakarta, INTI - The Indonesian government is preparing to build several crude oil storage facilities in Sumatra as part of efforts to strengthen national energy security, with a target of expanding oil reserve capacity to cover up to 60 days of domestic demand.

Coordinating Minister for Downstreaming and Energy Transition and Minister of Energy and Mineral Resources Bahlil Lahadalia said the facilities would provide storage capacity for imported crude oil while improving Indonesia's ability to meet its domestic energy requirements.

Bahlil announced the plan after attending a limited cabinet meeting with President Prabowo Subianto at the Presidential Palace in Jakarta on Tuesday, November 3, 2026.

"We will build several storage facilities in Sumatra so that imported crude oil has sufficient storage capacity. Our initial target is to exceed 20 days, with the longer-term goal of reaching 60 days," Bahlil said following the meeting.

The planned facilities form part of the government's broader strategy to expand Indonesia's crude oil storage capacity from its current coverage of more than 20 days toward a 60-day target.

Feasibility Study Completed as Government Prepares to Assess Potential Storage Sites

Bahlil revealed that the government had completed a feasibility study (FS) as an initial step toward developing the planned crude oil storage facilities in Sumatra.

With the feasibility study finalized, the government will proceed to assess several potential locations for the construction of the facilities.

Site inspections are scheduled to begin toward the end of 2026, with particular attention to safety, security, and local geographical conditions.

"The feasibility study has been completed. By the end of this year, we will begin assessing potential locations in terms of security, including earthquake risks and local security conditions," he said.

The government will evaluate seismic risks and local security conditions to ensure that the crude oil storage facilities can operate safely and reliably.

Bahlil emphasized that site selection must be conducted carefully, given the safety considerations and potential disaster risks associated with large-scale oil storage infrastructure.

"One of our considerations is to ensure that the storage facilities are not located in areas with significant disaster risks. This is fundamentally a matter of safety," he added.

Bahlil Targets Indonesia's Oil Reserves to Approach the 90-Day International Benchmark

Beyond the initial target of securing 60 days of crude oil storage capacity, the government also aims to expand national energy reserves toward what Bahlil described as the international minimum benchmark of approximately three months, or 90 days.

Expanding storage capacity is expected to strengthen Indonesia's preparedness in responding to changing energy demand and uncertainties in global oil supplies.

"We will make every effort to approach the international minimum standard, which is around three months or 90 days. Even if we cannot fully achieve it, we aim to get as close as possible," Bahlil said.

The government considers the development of crude oil storage infrastructure an important measure to reinforce national energy security while increasing its capacity to accommodate imported oil supplies.

However, the selection of construction sites will continue to prioritize regional security and disaster risk assessments to minimize potential operational and safety hazards.

Prabowo Reviews Readiness for E20 to E50 Ethanol-Blended Fuel Implementation

In addition to the crude oil storage development plan, Bahlil said the government is also preparing to expand the use of ethanol-blended fuels, ranging from E20, containing 20% ethanol, to E50, containing 50% ethanol.

According to Bahlil, President Prabowo Subianto has asked about the government's readiness to implement E20 as part of its broader strategy to strengthen national energy security.

"The President asked about our readiness to implement E20 to support national energy security, as well as the development of E20 through E50. We have prepared a strategic plan together with the Minister of Agriculture," Bahlil said.

He explained that the government had prepared a strategic development roadmap involving the Ministry of Energy and Mineral Resources and the Ministry of Agriculture.

Coordination between the two ministries is essential to ensuring upstream readiness, particularly in securing the agricultural feedstock required for ethanol-based fuel production.

The development of E20 to E50 is part of the government's efforts to diversify fuel sources and expand the utilization of alternative energy to support long-term national energy security.

Government Maintains B50 Biodiesel Policy Amid Global Geopolitical Uncertainty

Alongside the development of ethanol-blended fuels, the government has confirmed that its B50 biodiesel policy will remain in place as part of its national energy security strategy.

B50 is a blended fuel containing 50% biofuel derived from renewable plant-based sources and 50% conventional diesel.

Bahlil said the development of biofuel alternatives remains an important government priority amid unpredictable global geopolitical conditions that could affect energy markets and supply chains.

"We will maintain B50 because the geopolitical situation is unpredictable, and we do not know how it will unfold," he said.

The government views alternative fuel development and expanded crude oil storage capacity as complementary measures to strengthen national energy resilience.

Through the construction of crude oil storage facilities in Sumatra, the development of E20 to E50 ethanol-blended fuels, and the continuation of the B50 biodiesel policy, Indonesia aims to improve its energy preparedness while addressing domestic demand and uncertainties in the global energy landscape.

Conclusion 

Indonesia's plan to expand crude oil storage capacity in Sumatra reflects its commitment to strengthening national energy security and reducing vulnerability to global supply disruptions. With a target of 60 days of oil reserves and ambitions to approach the 90-day international benchmark, the government is also advancing alternative fuel initiatives through E20, E50, and B50. These combined efforts are expected to diversify energy sources, improve supply resilience, and support Indonesia's long-term energy independence.

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